The company's underlying assumption is that TV viewing is shifting away from scheduled programming in favor of on-demand viewing. Its set-top box can hold about 1,000 hours of video, whether they be time-shifted broadcasts or programs pushed to subscribers based on their viewing preferences. Its software is designed for a different approach to TV, too, eschewing the typical grid-like program guide in favor of customized lists for each member of the subscriber's household. Those menus can change over the course of the day to reflect the viewer's habits, [co-founder Phil] Wiser saids -- for example, putting talk shows at the top of the list in the morning, dramas at the top at night.

Borrowing a concept from online search, Sezmi's software will make it easy to hop from a show to related programs.

Unlike struggling Internet-based "add-on" services such as CinemaNow, Amazon Unbox and AppleTV, Sezmi aims to replace the cable or satellite box completely. Sezmi hasn't announced a full channel lineup but promises a "comprehensive" tier of favorites such as ESPN, FX and CNN, as well as premium channels such as HBO. Its DVD-player-size box also plays pay-per-view movies and Web video from YouTube and other sites.

Sezmi wrote a clever and simple user interface that shows channel lists the traditional way or groups content into zones, such as football, movies or new content brands ("All Comedy Central content," for instance). Shows and clips related to that zone get stored on the box's huge 1-terabyte hard drive, giving it all the powers of TiVo and then some.

If SezMi can work out its economics with partners and deliver that pricing to consumers, it would be a very compelling alternative to today's cable/satellite offerings. The key is to whom? In my briefing many types of customers were mentioned: analog subscribers, new HD TV purchasers, over-the-air households, and others. Given how ground-breaking its service is, in my opinion SezMi needs to go after digitally savvy audiences first.

About

CinemaTech focuses on how new technologies are changing cinema - the way movies get made, discovered, marketed, distributed, shown, and seen. (With occasional forays into other parts of the entertainment economy.) You can also follow CinemaTech on Twitter (@ctechblog).

About Me

For about the last ten years, I've been writing about innovation for publications like the Boston Globe, the New York Times, Wired, Variety, Fast Company, the Hollywood Reporter, Salon.com, BusinessWeek, and Newsweek.
I helped start (and continue to help run) three conferences: Future Forward, the Nantucket Conference on Entrepreneurship & Innovation, and Convergence: The Life Sciences Leaders Forum. I also often speak and moderate at other people's conferences, and serve as a commentator on TV and radio. (Which beats actual work.)
You can reach me by e-mailing kirsner - at- pobox.com. My personal site is www.scottkirsner.com.